By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks marched higher Tuesday
after housing data were mostly in line and consumer confidence rose
by more than expected.
The S&P 500 (SPX) rose 14.15 points, or 0.8%, to 1,871.45.
The Dow Jones Industrial Average (DJI) rose 118.58 points, or 0.7%,
to 16,394.76
The Nasdaq Composite (RIXF) was 46.24 points, or 1.1%, higher at
4,272.10.
"Today's economic data were as expected and market reaction has
been muted," said Brad Sorensen, director of market and sector
research at Schwab Center for Financial Research.
"Markets are waiting for a catalyst to take them higher or
lower, as things are once again quiet overseas, earnings season has
not started yet and valuations are not too low or high," he
added.
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U.S. home prices slipped in January for a third straight month
after a particularly harsh winter, according to data released
Tuesday, as strong year-over-year appreciation showed signs of
moderating.
New U.S. homes sold at an annual rate of 440,000 in February,
down 3.3% from January's one-year high, the government said
Tuesday. Economists polled by MarketWatch forecast sales to total a
seasonally adjusted 440,000
A gauge of U.S. consumer confidence rose to 82.3 in March from
an upwardly revised 78.3 in February, the Conference Board said
Tuesday.
Markets were reassured by comments from Philadelphia Fed
president Charles Plosser, who said in an interview with CNBC that
short-term interest rates should hit 4% at the end of 2016. He also
said the market reaction to Federal Reserve Chairwoman Janet
Yellen's comments after last week's Federal Open Market Committee
meeting was "puzzling." He said her timetable of a rate hike six
months after the end of bond buying "wasn't a wildly unexpected
time frame." Her comments sparked a selloff for stock markets last
Wednesday.
Plosser, who is a voting member of the Fed's policy committee,
said the rate forecast isn't aggressive. The Philadelphia Fed chief
is due to speak again at 7 p.m. Eastern. Atlanta Federal Reserve
President Dennis Lockhart will speak as the market closes at 4 p.m.
Eastern time.
(CCL)In corporate news, shares in Walt Disney Co. (DIS) were up
0.6% after the media giant said late Monday it was buying Maker
Studios for as much as $950 million. The privately held studio is
credited with making the Harlem Shake video go viral.
Vertex Energy Inc. (VTNR) shares were up 5% after the
environmental services company said late Monday that net income
rose to $7.88 million last year, a 115% jump from the prior
year.
Volatile fuel-cell company stocks rose Tuesday, reversing losses
from the prior session. Plug Power Inc. (PLUGD) rose 4.2% while
FuelCell Energy Inc. (FCEL) was up 1.7%.
Himax Technologies Inc. (HIMX) sank 11% after Bank of America
Merrill Lynch downgraded the semiconductor maker to underperform,
saying the highly competitive market will make margin expansion
difficult for Himax, according to news reports.
Walgreen Co. (WAG) rallied 4.5% after the company reported its
fiscal second-quarter earnings, which fell slightly from the
year-earlier period. The drugstore chain said it would close 76
stories later this year.
Shares of Sonic Corp. (SONC) rallied 10% after the company
posted a 15% profit gain.
Shares of Carnival Corp (CCL) dropped 2.5% after the cruise
company reported that it swung to a fiscal first-quarter loss. Its
outlook for the next quarter came in below Wall Street's
expectations.
In other markets, stocks in Asia showed a modest pullback, as
investors continued to mull downbeat China manufacturing data from
the weekend and a slightly disappointing Markit preliminary U.S.
purchasing managers index. European stocks pushed higher, shrugging
off soft German business-confidence data.
Gold prices (GCM4) gave up earlier gains and were lower. Oil
(CLM4) prices ticked up. The ICE dollar index (DXY) , which
measures the U.S. unit against a basket of six major rivals, rose
to 80.05, from 79.923 late Monday.
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